Polkadot Eyes Strategic Treasury Shift Into Bitcoin
A bold proposal to convert 500,000 DOT (worth approximately $50 million) into Bitcoin has triggered an intense debate within the Polkadot community. Introduced by a community contributor, the plan seeks to diversify Polkadot’s treasury by gradually accumulating Threshold Bitcoin (tBTC) through a one-year dollar-cost averaging (DCA) strategy.
The core objective: strengthen long-term financial stability and position Polkadot for market volatility by adding Bitcoin as a strategic reserve asset.
Community Split: Hedge or High-Risk Gamble?
The plan would utilize Hydration’s automated system to convert DOT to tBTC via scheduled DCA intervals. Additionally, a small liquidity contribution of 0.005 tBTC would be added to the Hydration Omnipool, further enhancing on-chain liquidity.
Supporters believe Bitcoin acts as a hedge and ensures operational continuity—especially in uncertain market cycles.
However, critics challenge the timing. With DOT trading near yearly lows and Bitcoin holding above $100,000, some fear this move may add selling pressure to DOT and reduce treasury flexibility during a crucial market phase.
One community member voiced concern:
“It’s likely to do more harm than good with the additional downward pressure that we’re already contending with.”
Governance Transparency Under Scrutiny
Beyond economics, the proposal raises questions about governance transparency. Critics say that before going on-chain, the vote should reach a broader audience on platforms like X (formerly Twitter).
“This proposal is about risk management and operational continuity, not market timing,” the proposer emphasized.
“Waiting for ideal conditions may leave the treasury exposed.”
This tension highlights ongoing concerns around decision-making authority within DAO ecosystems—particularly when a small forum group pushes large-scale financial decisions.
Polkadot May Join Growing Bitcoin Treasury Trend
If passed, Polkadot would become one of the first blockchain networks to build a Bitcoin-backed treasury, joining a wave of institutional interest in BTC as a treasury asset. Notably, Mercurity, a Nasdaq-listed firm, also revealed plans to build an $800 million Bitcoin reserve.
Whether Polkadot’s move will serve as a safeguard or backfire as a risky experiment remains an open question—but it’s one the community must answer soon.
On-chain voting may begin next week, depending on further feedback.